INSURANCE: Know the Cost Of a Car Crash
Recent Gauteng Business News
Statistics indicate that every year, one in four people will be involved in a vehicle accident while one in every two people will experience a collision at least every three years. With two out of every three drivers being uninsured, the chance of being hit by a driver who is without insurance is high.
Impact on the uninsured
Should you get into an accident but have no insurance, the consequences can be financially devastating even if there are no injuries.
While there is damage to your own vehicle to consider, if you caused the accident, you could also be held responsible for the costs of repairing damage to the property of other people. This can be pursued by the other party in an accident, but in reality it is usually their insurance company which will seek damages.
If others are injured, you could also be sued for medical costs, pain and suffering inflicted on third parties.
Impact on the insured
If you do have insurance, but get into an accident with someone who doesn’t, there are still implications for you. Most significantly, you will have to pay an excess for any repairs which may be necessary to your vehicle and other property. Your premium could also be increased if you have had to claim, as your risk profile changes even though the accident wasn’t your fault. Some insurers also revoke the no-claim bonus; however, with MiWay, clients receive a bonus whether they claim or not.
Impact on insurers
To make their products attractive to customers, insurers work to keep their premiums as low as possible, while still ensuring sustainability. However, uninsured drivers directly impact the industry by driving up costs which often have to be passed on to customers.
Uninsured drivers who have caused an accident often cannot afford to pay for the damage. The insurer can pursue them for costs, but this in itself is an expensive exercise and in many cases, doesn’t bear fruit. After all, if someone has no money, they cannot pay.
If you are on the road, take advantage of low cost options. Some cover is better than no cover at all, so if your circumstances change, get in touch with your insurer to find out which options are available to you.
Insurance Alternatives for the uninsured
The low-cost alternatives available to uninsured drivers include:
Third-party, fire and theft covers you for fire and theft of your car and damage to the property of others.
Third-party only covers damages to the property of others.
MiWay’s unique MiWheels Limited Product, which offers partial cover for your vehicle, as well as benefits such as transport money in place of car hire.
Business News Sector Tags: Insurance|